Exploring Starbucks NNN for Sale: Your Guide to Secure Investments

If you're on the hunt for lucrative investment opportunities, considering a Starbucks NNN (Triple Net Lease) for sale could be a smart move. With their established brand, consistent customer base, and a lease structure that offers a hands-off approach for investors, Starbucks NNN properties are often seen as a prime choice in the commercial real estate market. In this guide, we'll delve into the benefits of investing in Starbucks NNN properties and provide you with valuable insights to make an informed decision.

Understanding Starbucks NNN Properties:

Starbucks, a global coffee giant, is a well-known name not just for its beverages, but also for its stable presence in the commercial real estate landscape. NNN leases, in particular, offer an attractive opportunity for investors seeking reliable income streams. With an NNN lease, the tenant (Starbucks, in this case) assumes responsibility for property taxes, insurance, and maintenance costs, relieving the property owner of these financial burdens. This lease structure allows investors to enjoy a passive income flow without the day-to-day hassles of property management.

Why Invest in Starbucks NNN Properties:

1. Brand Recognition: Starbucks has a loyal and widespread customer base. Their strong brand reputation can contribute to steady foot traffic and sales, ensuring a consistent income stream for property owners.

2. Long-Term Stability: Starbucks typically signs long-term leases, often 10 to 20 years, providing investors with a reliable and predictable income source.

3. Hands-Off Investment: The NNN lease model means that investors have minimal involvement in property management. Starbucks takes care of property-related expenses, allowing owners to enjoy a truly passive investment.

4. Prime Locations: Starbucks strategically chooses locations with high visibility and heavy foot traffic. Investing in a Starbucks NNN property means owning real estate in a prime location.

Factors to Consider about Starbucks NNN 1031 Properties

While Starbucks NNN properties offer several advantages, it's essential to conduct thorough research before making a decision. Here are a few factors to consider:

1. Location: Even though Starbucks tends to choose prime locations, it's important to assess the specific area's demographics, growth potential, and competition.

2. Lease Terms: While Starbucks leases are generally long-term, it's important to review the lease terms, rent escalations, and any clauses that might affect your investment's profitability.

3. Market Trends: Stay updated on market trends and Starbucks' performance as a business. This will help you gauge the sustainability of your investment over time.

Exploring Opportunities:

If you're eager to explore Starbucks NNN properties for sale, 1031 Navigator can be your trusted partner in this venture. With a dedicated team of experts in the field of NNN investments, they provide valuable insights, property listings, and guidance to help you make informed investment decisions.

Investing in Starbucks NNN properties can offer a stable and hassle-free source of passive income, backed by a globally recognized brand. The NNN lease structure, along with Starbucks' long-term stability, makes these properties an appealing choice for investors seeking both financial security and minimal management responsibilities. However, remember to conduct thorough due diligence and seek professional advice to ensure that your investment aligns with your financial goals. Start your journey towards Starbucks NNN investment success today with 1031 Navigator

Completing your 1031 exchange could be just a just a cup of coffee away!

How to Find the best Walgreens 1031 NNN Real Estate For Sale

Finding a good selection of Walgreens 1031 NNN Real Estate for sale is not as easy as you might hope. Because there is no reliable central repository of commercial listings, the Walgreens 1031 NNN Real Estate for sale in the market are typically spread across a number of different resources, only some of which are freely available to the public.

Internet Listings of Walgreens 1031 NNN Real Estate for Sale

There are a few sites which present Walgreens 1031 NNN Real Estate for sale as well as other commercial real estate listings. The two best known, Loopnet and Costar Exchange, are a monopoly and charge an arm and leg to search their databases. Both allow just about anyone to post listings of Walgreens 1031 NNN Real Estate for sale, as well as other property types. The key problem with these sites is that many of the best Walgreens 1031 NNN Real Estate for sale never make it on to them.

Principal Listings of Walgreens 1031 NNN Real Estate for Sale

Many principals, whether they are owners or developers, list their own Walgreens 1031 NNN Real Estate for sale on their websites. CrestNetLease and Kimco Realty are two such ownership groups that do this, and Bencor Development is an example of a developer that posts its Walgreens 1031 NNN Real Estate for sale right online. Although direct principal to principal marketing can yield you access to inventory, it is a great deal of work to visit each of these sites. In addition, IF you do not have an expert guiding you, you may not know which of the Walgreens 1031 NNN Real Estate for sale that you see are good deals and which are not.

Hire A Professional Broker to Bring You Walgreens 1031 NNN Real Estate for Sale

The easiest way to find Walgreens 1031 NNN Real Estate for sale is also the best way. Instead of spending your time to scour the Internet to find just a small subset of the Walgreens 1031 NNN Real Estate for sale out there, hire a broker (for FREE) and let them do the work for you. Your broker should have not only a strong knowledge of all of the places to look for Walgreens 1031 NNN Real Estate for sale, but should also have insider access to listings that you may not be able to see. In addition, they should be able to guide you to not only good Walgreens 1031 NNN Real Estate for sale, but to the best Walgreens 1031 NNN Real Estate for sale for you and your specific needs. In addition, because most sellers will pay your broker’s commission, the service and guidance that he brings you should not even cost you anything.

Call Thomas Morgan, CCIM, a Walgreens NNN Broker, at 1-866-539-1777

NNN 1031 Podcast - Update

Thanks to all the listeners of the 1031 Exchange Passive Income Series on itunes and other podcast sources.

And thanks for the calls and emails from our listeners.  Glad we can answer your 1031 exchange and triple net questions.

Here is the new page with all the podcast show links as well as links to itunes and stitcher and youtube etc:

www.1031navigator.com/podcast-nnn-1031

1031 - To Do or Not to Do? - That is the question

This one was a lot of fun.  I like to dork out on the numbers.

I get asked all the time: "Should I do a 1031 exchange?"

Again the answer: Depends.

Depends on what you bought the property for and what you are selling for and how long you have owned it.  Depends on your overall financial situation and what your needs and investment goals are.

Typically, if you have not owned a property that long, say 2-4 years, it makes sense to pay the tax and reset you cost/tax basis.  That is unless your gain is huge, then you probably want to do a 1031. 

OR if you have owned a property a long time or inherited it and the basis is very low or zero then you should do a 1031.  This is situation that 90% of my clients fall into.

Below are some quick and dirty numbers from the episode "NNN 1031 Secret #2" of the 1031 Exchange Passive Income and Investment Series on iTunes and every other podcast platform and YouTube.  The audio has more info and details than this post and I dive into this topic in depth so make sure to download it for your next drive, walk or exercise or for when you are doing the dishes.

A lot of times people who are new to a 1031 exchange get cold feet, have misgivings or get overwhelmed with the process and say "I'm just going to pay the tax."

I say "It's your money. You should definitely do what you want and need to. But consider this...."

Basically, in my humble opinion, the 1031 exchange is the greatest wealth building tool known to mankind besides compound interest. 

For the purposes of this example I am going to use $1,000,000 as the total sale proceeds. If you have $5MM or $10MM sale proceeds, the cash flow and capital accumulation are of course magnified 5X or 10X.

Listen to the show for details but most people considering a 1031 have zero or very low tax basis in the property they are selling. The majority of my clients have pretty much the entire sale price as the capital gain. On a $1MM sale, with zero basis the capital gain is $1MM.  I have one client right now with a $15MM gain and have worked on one with a $40MM gain. How does paying $10MM to $12MM in tax sound?  Ouch!

Fed capital gains tax is 23.8% right now with the ACA tax included and most states also have a capital gains tax.  The IRS will also tax you on the depreciation you took over the life of the investment which is called a recapture tax and that is 25%.  In effect, the capital gains tax is much higher than the stated rate dependent on how much income you sheltered with depreciation over the life of the investment.  A good rule of thumb is 30% of the gain goes to Uncle Sam.

In the examples below, if you have a $1MM gain/sale, $300k goes to taxes and you have $700k left over.  Yes a 30% reduction in investment capital. 

BUT I look at inversely, if you do a 1031, the government allows you to keep and use (for the time being through deferral) the $300k.  This is about 43% more investment capital (30% tax of $1M is 300k but 300k more than 700k is 43% MORE.)

This is the kicker.  If you can invest $700k or invest $1MM and you get the benefits of the investment such as cashflow, depreciation and appreciation, which would you choose?

Most of us would rather get the benefit of the $300k now and in the future rather than cut a check to the IRS now.  Once you write the check, $300k of your money is gone.  POOF!

This is what the numbers look like.  I ran them two ways. One based on a triple net investment for cash flow.  And two for an IRR deal like development or value add or sell in the future type deal.

Effects of 1031 on Cashflow

For a NNN investment, let's say you get 6.5% cap rate or annual cash flow.  This is all unleveraged of course. 

At end of the day you have 43% more money invested and therefor 43% more benefit. 

Pay tax now of $300k or get $20k more per year in cash flow on the $300k. Over 5 years this is $100k more.  Over 10 years this is $200k more.

Would you rather have $65,000 per year or $45,500 per year?

Or another way to see it:

Lose $300k now (send a check to IRS) and lose $20,000 per year of additional income for the rest of your life!

Effects of 1031 on Capital Growth

The other way I looked at was from an IRR perspective or overall rate of return. (IRR is Internal Rate of Return or annual overall yield)  Let's say you have an opportunity to invest in a NNN development or apartment building with upside or a value-add investment deal.  The IRR takes into account all cashflows including purchase and sale and costs etc.

15% is a reasonable IRR. You can get that on strip centers and apartment buildings and rehab projects.  Most developers are targeting 20-30% IRR's so 15% is reasonable.

Hmmmmm.... 1031 or no?

Over 5 years grow your $1MM to over $2M?  Or pay the tax and leave $603k on the table?

Over 10 years grow your $1MM to over $4MM? Or pay the tax and leave $1,213,667 on the table?

Easy decision for most of us.

Pay the Tax and Invest Outside of the 1031?

Earlier this year a client was wavering and going back and forth on a 1031 exchange.  They had $3.6MM from the exchange.  They thought they could pay the tax in order to get higher yields outside the 1031. 

Sure there are more investments outside of the 1031 like stocks and private equity etc.. However, when compared to NNN 1031 Investments those investments are going to be much more risky. This client's goal was secure, passive income and capital preservation. Paying the tax and trying to invest in these other types of investments were totally contrary to these goals.

Let's say they could get 6.5% cap rate/yield on the NNN 1031. That is $234k per year of income.

They were looking at over $1M of taxes. Poof!

At the end of the day, after paying tax and reinvesting they would have to get a 9.3% cap rate or IRR to get what they would get on the 1031 NNN property.

Not sure about you, but I don't know of too many investments, if any, paying 10% per year that are hands off, safe and protect your capital. Maybe Madoff can help?

Here are the numbers:

Another option here which many of my clients have is to do the 1031 all cash then refi.  The IRS does not tax the refi proceeds.  In this case the client could have easily gotten a 50% loan and pulled out $1.8MM.  Then the tenant pays back the $1.8MM loan and the $1.8M in proceeds could be invested in something at a higher yield. 

To me, this is the ultimate benefit. On the $1MM example, a person completes a $1MM 1031 at 6.5% then pulls out $600k (60%) tax free and reinvests in whatever they want.  This is 900k of money that will accrue to your benefit.  ($300k tax deferral and $600k loan reinvested).

Now, that is wealth building! 

What do you think Warren? (Buffet of course)

Let me know your thoughts and if you think a 1031 exchange is right for you!

Text me at 970-618-4086 or get a free 1031 exchange and real estate investment consultation here.

Cheers, Thomas

Is the Lease really NNN? - 1031 Exchange & Passive Income Investment Series

Today we look at if the Lease is really triple net?  Is it absolute net, triple net or double net?

Get the Whole Podcast on Itunes here.

In NNN investing, the lease is one of the most important things. The point of investing in NNN properties is to have a hands off investment.

When buying NNN properties make sure to read the lease to see if it is really true NNN or not.

Many triple net brokers and NNN sellers will advertise the lease as "net leased" or "ease of management" or "minimal landlord responsibilities" . Often times the lease will have more landlord responsibilities that advertised. Thomas Morgan, CCIM of 1031navigator.com talks about absolute net leases, NNN leases, and NN leases.

Beware of opening escrow without having read the lease to see if it is triple net or not. This will save you time and money on your 1031 exchange NNN property purchase.

Is the Lease really a NNN Lease? - Triple Net Properties Q&A

Today we look at if the Lease is really triple net?  Is it absolute net, triple net or double net?

In NNN investing, the lease is one of the most important things. The point of investing in NNN properties is to have a "hands off" investment.

When buying NNN properties make sure to read the lease to see if it is really true NNN or not.

Many triple net brokers and NNN sellers will advertise the lease as "net leased" or "ease of management" or "minimal landlord responsibilities" . Often times the lease will have more landlord responsibilities that advertised.

In this Video and Audio Q&A Thomas Morgan, CCIM of 1031navigator.com talks about absolute net leases, NNN leases, and NN leases.

Beware of opening escrow without having read the lease to see if it is triple net or not. This will save you time and money on your 1031 exchange NNN property purchase.

Video

Audio Version

Subscribe in iTunes or Stitcher

1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.

Our focused expertise, experience and daily triple net market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty. 1031 Navigator has been involved with over half a billion dollars of 1031 Exchange NNN Properties in over 30 states.

1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit:

http://www.1031navigator.com

NNN Properties - What Price Should I Offer?

When making an offer on triple net property you should first assess the asking price relative to the market.

If the NNN property is priced right, a good first offer is 90% + of ask price. This will still allow room for you to get a deal on the NNN property but also ensure the seller responds. Thomas Morgan, CCIM of 1031Navigator.com shares some offer info on a $6MM+ NNN 24 year CVS NNN property he is working on.

For a FREE 1031 Strategy Session call 1-866-539-1777 or go here.

1031 Navigator helps investors nationwide find the best 1031 Exchange replacement properties in the shortest amount of time.  

Our focused expertise, experience and daily triple net market presence enables clients to complete their 1031 Exchanges with peace of mind and certainty.  1031 Navigator has been involved with over half a billion dollars of 1031 Exchange NNN Properties in over 30 states.

1031 Navigator is a service of Andrus & Morgan Co., a national commercial and investment real estate brokerage specializing in passive income investments.

For a free, no-obligation 1031 Exchange NNN Property Strategy session for your 1031 Exchange visit:

www.1031navigator.com

Can my attorney do my 1031 Exchange?

Beware of advice like this. https://twitter.com/WORLDBESTLAW/status/659204367224967168

The issue is not the tweet but the actual article which states:

An attorney is such a “qualified intermediary”. A 1031 lawyer will prepare your 1031 documents and will facilitate the entire tax free transaction. It is very important that a professional such as a Lawyer facilitate the transaction because firstly if any mistake is made on the transaction or the paperwork with the transaction that needs to be filed with the IRS you will lose your tax free status. Also, the IRS regulations state that the money received from the sale of your current property must not be “touched” by you as the owner. It must go directly to the “qualified intermediary” who will then provide the funds for purchase of the new property. The mechanism of a 1031 exchange is quite complex however by utilizing a Lawyer to facilitate the transaction is a very efficient and cost effective way of performing the 1031 tax free exchange.

Let's be clear.

Attorney's can act as 1031 qualified intermediary.

Just don't use your attorney.

Treasury covers this in Reg. 1.1031(k)-1(k)(2).

Patrick Harrigan, President/COO and a Certified Exchange Specialist at Gain 1031 Exchange Company, LLC covers this really well here:

The Role of the Qualified Intermediary in a 1031 Exchange: Who Can Audition?

This is what he says:

The Treasury Regulations state that someone who has acted as the taxpayer’s employee, attorney, accountant, investment banker, real estate agent or broker within two years prior to the date of the closing of the sale of the relinquished property is the agent of the taxpayer and is disqualified to act as the intermediary for that taxpayer. This means a seller of property cannot have their attorney, real estate agent, etc. hold their proceeds if they intend to complete a 1031 exchange. Also disqualified are all attorneys in the same firm as the seller’s attorney and any real estate agent in the same brokerage as the seller’s real estate agent. The regulations then proceed to state two exceptions to the disqualification of an agent.

Exception 1 The regulations except out services that are routine financial, title insurance, escrow or trust services performed by a financial institution or title insurance company. Thus, those businesses do not become an agent of the taxpayer based on their routine activities and are allowed to act as intermediaries.

Exception 2 The regulations also except out services performed by the agent “for the taxpayer with respect to exchanges of property intended to qualify for nonrecognition of gain or loss under Section 1031.”

The best bet is to hire an unrelated 1031 Intermediary company like Asset Preservation or Starker Services.

Any extra work to do this is sure to be less than that of an IRS challenge or a voided 1031 exchange.

Put $7,967.31 in your pocket!

Learn about how a guy got paid $7,967.31 when he did his 1031 exchange.

BONUS: Find out how to do a 1031 exchange for FREE.

Find out How

Deal Hunting - 1031 Exchange Replacement Property

I’m in Northeast Boulder Colorado hunting for a 1031 exchange replacement property.

Within a few blocks of me, I had a choice of an Office Condo, Industrial Land, and an Office Building with potential redevelopment opportunity.

I chose the third option as it seems to be the best location and have the most upside along with cashflow:

• 3000 Pearl Street cor 30th Street (1031 Replacement Property Link)
• $3,250,000
• 13,000 SF Bldg
• Office Building with potential redevelopment opportunity
• $250 / foot
• 4 story building redevelopment possibility of 70,000 SF in total

1031 Exchange Replacement Property near the following:

• Hyatt
• Barnes and Noble
• Chase bank
• Whole Foods
• Target

Overall, it’s a solid 1031 opportunity for those looking for 1031 exchange replacement property.

Put $7,967.31 in your pocket!

Learn about how a guy got paid $7,967.31 when he did his 1031 exchange.

BONUS: Find out how to do a 1031 exchange for FREE.

Find out How